BRRRR question regarding refinancing process

[Kristopher Bustillo]

If I was take a mortgage loan and use that money to buy a new home, will I qualify to get a new loan to repeat the cycle and keep investing again? How deeply would it effect your debt to income ratio?

[Joseph Firmin]

Not sure I understand your question completely. If you refinance your BRRRR property, you hopefully executed the process correctly and receive your initial investment (plus some extra) and can then go re-invest that capital in another property. It will affect your DTI, yes. If you get a loan on it with a portfolio lender and put it in an LLC, that would help. A conventional lender will most likely look at your W2 and if your income will support multiple mortgages. A portfolio lender will many times look at whether the asset is performing and lend on that criteria more than DTI information.